In addition, in an interview with Bloomberg, Eric Sprott – who manages $4.5 billion in assets, and correctly predicted in March of 2008 a “systemic financial meltdown” – is predicting that the depression which he says we are just beginning could drive the price of gold up to $2,000/ounce.Sprott argues that the worsening crisis could cause a failure of treasury auctions, which would drive the price of gold sharply higher.

“I believe no matter what environment you’re in – deflation or inflation – people will run to gold,” Sprott said. “Gold is proving exactly what we all would have expected, that in almost any environment, it’s a go-to asset.”

Of course, the government could seize gold at any time, as FDR did during the Great Depression. And there are many who say that the gold market is rigged. So diversification is always important.

Note: I am not an investment advisor and this should not be taken as investment advice.